Binance Labs, the venture capital and incubation unit of crypto exchange giant Binance, made a new announcement. He has his sights set on a project that aims to expand Bitcoin’s capabilities beyond the traditional store of value. He invested in BounceBit, a Bitcoin restaking and CeDeFi protocol. BounceBit transforms BTC into a dynamic force within the ecosystem through active participation in network verification and various yield-generating activities. Here are the details…
Binance invested in BounceBit
At the heart of BounceBit’s innovative framework, empowering Bitcoin is critical. Also at the center lies the belief that the Bitcoin Blockchain should be primarily asset-focused without changing it. BounceBit attracts attention with strategies such as funding rate arbitrage, re-staking and on-chain certificates for mining. In particular, it offers new possibilities for Bitcoin by seamlessly combining the best features of CeFi and DeFi. Thus, facilitating advanced yield creation and execution. Yi He, Co-Founder and President of Binance Labs, said:
BounceBit opens new avenues for the use of Bitcoin through the combination of CeFi and DeFi. At Binance Labs, we are always on the lookout for innovators shaping the industry and look forward to watching them grow as they fulfill their mission to power Bitcoin with secure and transparent CeDeFi solutions.
BounceBit is managed by a team with experience in decentralized finance, traditional finance and Layer 1 Blockchain technology. BounceBit prioritizes security and transparency by using regulated custody and Multi-Party Computation (MPC). Ceffu’s Mirror X and off-exchange settlement (OES) solutions are used to minimize counterparty risks. However, BounceBit is committed to creating a safe environment for Bitcoin to participate in return-generating activities.
Incentives are provided for Bitcoin staking
One of BounceBit’s innovations is its unique Proof of Stake (PoS) Layer 1 ecosystem. This ecosystem encourages validators to stake both BounceBit tokens and BTC. Thus, it goes beyond just aiming to strengthen network security. It also directly incorporates BTC into network operations. Thus, it creates a dual-token system that increases its value and utility. BounceBit aims to increase the security and operational efficiency of the network by restaking Bitcoin across multiple systems such as oracles and bridges. BounceBit Founder and CEO Jack Lu said:
Our mission is to re-build the staking infrastructure to increase the use of Bitcoin, and we want to do this in a safe and transparent way. Our focus on CeDeFi and developing a robust restaking ecosystem is just the beginning. We are grateful for Binance Labs’ support in this effort.
Things to know about companies
BounceBit is building a BTC restaking infrastructure that provides a base layer for different restaking products, secured by Mainnet Digital and Ceffu’s regulated custody. Designed as a showcase of a restaking product within the BounceBit ecosystem, the BounceBit chain is a PoS Layer 1 secured by validators who stake both BTC and BounceBit, BounceBit’s native token.
On the other hand, Binance Labs, as Binance’s venture capital and accelerator unit, is now valued at over $10 billion. Its portfolio covers more than 250 projects from more than 25 countries on six continents. Additionally, the ROI is over 14X.
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